Posts Tagged ‘Costa Rica’

Who Is Regulating the Regulator in Costa Rica.

Sunday, May 15th, 2011

ARESEP – Who Is Regulating the Regulator?
Scott Oliver – May 2011

It’s comforting to know that like so many other countries in the “developed world,” while the President of Costa Rica calls for austerity, there are “public servants” here totally taking the piss by giving themselves outrageous increases on top of already obscenely generous salaries.

The Autoridad Reguladora de los Servicios Públicos (ARESEP) regulates the prices of electricity, water, gasoline and a few other public services but clearly has a problem when it comes to paying attention to the recommended guidelines for their own salaries.

While the government recommends a salary increase of 2.33%, ARESEP gave 3.9% – 10.7% raises in salary to 40% of their staff.
The General Manager received a 8.7% increase to c4,356,225 which is US$8,765 per month.
The Superintendente received a 8.2% increase and now earns US$8,853 per month.
There is even a secretary (“Secretaria 3″ earning US$1,246 per month.
The ‘Regulador General’ Dennis Meléndez – who now earns c5,507,611 per month which at 497:US$1 is US$11,081.71 per month – defended the expenses saying that the costs had no impact on the national budget, since the entity is financed by fees paid by regulated entities and companies.

Minimum Salaries in Costa Rica.
In January 2011 we published Minimum Salaries in Costa Rica 2011. Professional soccer players earn US$591 per month and we noted that the minimum salary of a general mechanic in Costa Rica is ¢245,813 (US$493) per month, a basic unskilled construction worker earns ¢221,495 (US$444) and a cook earns ¢245,813 (US$494) slightly less than a cashier who earns ¢249,725 (US$501) per month.
If I was a Tico working like a dog earning less than US$500 per month, I’m not sure if I would be too thrilled to discover that Dennis Meléndez was earning US$11,081.71 per month – 22 times as much as I was – for regulating the price of electricity and a few other products and services.

Mr. Meléndez seems incapable of understanding that the more money they are paid in salaries means the more money the “regulated entities and companies” must charge their consumers, people like you and I who use electricity, water and gasoline!

In an economically naive statement Dennis Meléndez added that: “We do not help nor worsen the fiscal situation.” (“Nosotros ni ayudamos ni empeoramos la situación fiscal”.)

One can’t help but asking who’s job it is to regulate the regulator?

Written by Scott Oliver, author of 1. Costa Rica Real Estate Scams & How To Avoid Them, 2. How To Buy Costa Rica Real Estate Without Losing Your Camisa, and 3. Costa Rica’s Guide To Making Money Offshore.

http://www.centralamericanretreats.com

Iran, Venezuela plan to build rival to Panama Canal.

Sunday, December 5th, 2010

While Obama ignores Central America we see enemies of the United States have not.

Iran, Venezuela plan to build rival to Panama Canal
Sources tell Haaretz that the recent Nicaragua-Costa Rica border incident was a trial balloon by the creators of a plan to build a new canal in Latin America.
By Shlomo Papirblat

The recent border dispute between Costa Rica and Nicaragua is a sign of an ambitious plan by Venezuela, Iran and Nicaragua to create a “Nicaragua Canal” linking the Atlantic and Pacific oceans that would rival the existing Panama Canal.

Costa Rica says that last week Nicaraguan troops entered its territory along the San Juan River – the border between the two nations. Nicaragua had been conducting channel deepening work on the river when the incident occurred.

Sources in Latin America have told Haaretz that the border incident and the military pressure on Costa Rica, a country without an army, are the first step in a plan formulated by Venezuelan President Hugo Chavez and Nicaraguan President Daniel Ortega, with funding and assistance from Iran, to create a substitute for the strategically and economically important Panama Canal.

The plan has aroused concern in Washington, and the U.S. has started behind the scenes efforts to foil it.

Panama is a country with a distinctly pro-American orientation. Since its construction was completed in 1914, the Panama Canal has served as an irreplaceable link between the Atlantic and Pacific oceans. More than 14,000 ships pass through the canal annually and recently the one millionth ship passed the canal since its opening.

In recent years, the amount goods passing through the canal in each direction totaled about 190 million tons. The transit fees paid by the ships and other canal-related activities account for 75 percent of the annual revenues of Panama’s economy. The Panamanian economy and Panamanian stability would be in real danger of collapse if another canal took away its monopoly on shipping between the Atlantic and Pacific oceans.

In recent years, the government of Ortega, a former Sandinista underground member, has tried to gain control of the San Juan River, which lies on the Nicaragua-Costa Rica border. Costa Rica brought the issue before the international court in The Hague, which after careful examination of historic maps, past agreements and terrain features, determined in July 2009 that the river belonged to Nicaragua, and that the border is located on the southern bank of the river. The court also ruled that Costa Rica had the right of free passage on the river.

However, the results of this ruling are not enough to allow for the implementation of the plan formulated by Venezuela and Nicaragua. In order to build a new canal linking the two oceans, they would also need to control the southern bank of the river and the point where the river meets the Atlantic Ocean.

Several weeks ago, Nicaraguan foreign ministry official informed Costa Rica of Nicaragua’s plans to do work to deepen the channel of the San Juan River in order to improve shipping on the waterway. Costa Rica did not oppose the plans, on the condition that the work did not harm the river or the bank on the Costa Rican side of the river.

The apparent engineering project was surprisingly placed under the supervision of Eden Pastora, better known as “Commandante Cero”, a hero of the former Sandinista underground. This was a hint that the work had more than a simple engineering purpose.

Two weeks ago, Pastora went to a farm of a Costa Rican citizen in the Calero Island area and told the farm owner that the area belonged to Nicaragua. The farm owner objected and subsequently farm workers were allegedly beaten and farm animals were allegedly killed. The farm owner called Costa Rican police who arrived and reported to their commanders that Nicaraguan troops had entered Costa Rican territory and raised a Nicaraguan flag.

Costa Rican President Laura Chinchilla last week called for a special session of the Organization of American States, located in Washington, but, after a day of talks, no resolution was reached. During the talks, Venezuela supported Nicaragua’s position while Panama strongly opposed it.

Chincilla announced on Wednesday that she plans to raise the issue before the United Nations Security Council and again demanded that Nicaraguan soldiers withdraw from Costa Rican territory.

Sources in Latin America consider these events, and the power demonstrated by Nicaragua, as a trial balloon by the creators of the “New Canal Plan” – Venezuela, Iran and Nicaragua. Western intelligence agencies are closely following the path of heavy machinery equipment to Nicaragua as well as the activities of Iranians in the Nicaraguan capital Managua.

A U.S. State Department official told Haaretz’s Washington correspondent Natasha Mozgovaya on Wednesday that the U.S. is not aware of any plans to build a new canal in Latin America.

In 2007, Chavez announced a plan to build a $350 million road connecting the two oceans and the Iranians have expressed an interest in constructing a port on the Atlantic Ocean. The U.S. did not express concern about either of those initiatives.

Otto Guevara : Movimiento Libertario running for President of Costa Rica.

Sunday, January 10th, 2010

Otto Guevara : First elected to congress as the sole representative for the Movimiento Libertario in 1998, Guevara earned recognition as Costa Rica’s best legislator by the press every year of his first term. In 2002, Libertarian Movement, with Guevara as the presidential candidate, elected 6 members to Congress out of 57 seats, but few weeks later they lost a Congressman, declared independent. After a split within the party that saw a group of libertarian members leave, Guevara said his party was moving to be liberal and no libertarian. 2006 saw the Libertarian Movement Party again elect 6 members to congress, but they lost again other Congressman. As a presidential candidate in 2006, Guevara earned almost 10% of the vote. In 2009, Guevara is elected presidential candidate for third time. Reason interviews Costa Rica’s Libertarian revolutionary Does what ML does in Costa Rica have implications for libertarians in the United States? Well, given the electoral system you have here, a different strategy might be needed. I don’t see the major parties changing the winner-take-all, first-past-the-post voting system. So perhaps, as an America, I would explore something like Ron Paul’s strategy instead. The key for us was exposure, and if you don’t necessarily have your own candidates, then it’s important to incorporate certain people with a national profile, who can give your positions credibility. It’s also possible that Costa Rica could be a sort of a “pilot project.” It’s a small county, with around 4 million inhabitants, and a fairly socialistic past. Our example could provide you with a very clear cut “before and after,” in the same way people who support pension reform in the United States can point to some of the successes in the South. Then you can go to Congress and say “Listen, guys, this thing I’m proposing… they’ve done it there, so let’s look at how it went.”

 Why would you not support a man with ideas to make the country better.

Otto Guevara for Costa Rica President

Thursday, January 7th, 2010

Failing to see any representation for his values in Costa Rica’s traditional parties, Guevara founded the Movimiento Libertario in 1994 to challenge the conventional orthodoxy of Costa Rican politics which he saw as lurching towards greater corruption and less respect for the individual rights of his people. He believes that the principles of moderate intervention of the State and more economical freedom as the best way to improve the lives of the Costa Rican people.

First elected to congress as the sole representative for the Movimiento Libertario in 1998, Guevara earned recognition as Costa Rica’s best legislator by the press every year of his first term. In 2002, Libertarian Movement, with Guevara as the presidential candidate, elected 6 members to Congress out of 57 seats, but few weeks later they lost a Congressman, declared independent. After a split within the party that saw a group of libertarian members leave, Guevara said his party was moving to be liberal and no libertarian. 2006 saw the Libertarian Movement Party again elect 6 members to congress, but they lost again other Congressman. As a presidential candidate in 2006, Guevara earned almost 10% of the vote. In 2009, Guevara is elected presidential candidate for third time.

Perhaps surprisingly, the most successful libertarian party in recent years has arisen in Latin America, where left and right wing variants of statism have been the norm for much of the 20th century. In Costa Rica, the ten-year-old Movimiento Libertario has managed to elect six diputados to the country’s 57-seat congress. The chief architect of that success was Otto Guevara, who served as the party’s first elected diputado, from 1998 to 2002. In late July, he spoke with Reason during a visit to Washington, D.C.’s Cato Institute.

The Otto Guevara  Costa Rica’s Libertarian revolutionary.        

 Interview with Julian Sanchez.

Costa Rica is a substantially socialist country, with a state monopoly on alcohol, a state monopoly on insurance. There’s a state monopoly in telecommunications, in agriculture, in fuel refinement and distribution. Education is constitutionally free, mandatory, and run by the state. Ninety-three percent of the population, girls and boys, attends public, state schools.

Costa Rica, like a majority of the Latin American states, experimented with a development scheme based on import substitution. It closed its borders, turned inwards. The state began to make inroads in many other industries—production of fertilizers, of cement, of cotton, of tuna. They had state tuna catching boats! Bankrupt industries were bought by the state with the idea of saving jobs. That’s how the state ended up running industries that make chocolates or catch shrimp. It led to $7 billion in losses for Costa Ricans.

In the 1980s, a new form of politics emerged. In the ’70s, they had put people on the public payroll. That was no longer sustainable. So they began a practice of instead granting privileges to unions and forced firms to buy licenses for, say, running cabs. These privileges were politically assigned, and as there were three principal banks, heavily controlled by the state, until recently loans, too, were politically assigned.

There were a range of giveaways to the poor as well, like the bono alimenticio to pay for food. A lot of people stopped working because food was guaranteed. Then came the bono de la vivienda or the bono de vivienda popular: $10,000 as a gift of the state for housing. To free education, they added a new benefit called the beca, or bono escolar to pay for schoolbooks.

This is the origin of our movement. Nobody was defending liberty. And it was being lost at an accelerated rate.

……More tomorrow

Costa Rica Presidential elections coming February 7th 2010.

Wednesday, January 6th, 2010

Preview of a candidate:

Otto Guevara Guth (born October 13, 1960) is a politician in Costa Rica and founder of the Partido Movimiento Libertario (Libertarian Movement Party). He served in the Costa Rican legislature from 1998-2006. Guevara is currently the president of the Libertarian Movement Party and a candidate for president of Costa Rica.

Otto Guevara is the son of civil servants. His father, Claudio, was a doctor for Costa Rica’s social security system. His mother, Mariechen , worked for the Social Security system before resigning to run the family’s tourism business.

Guevara studied at the University of Costa Rica where he earned Bachelor’s degree in law followed by a Masters in International Business from National University of Costa Rica and a second Masters degree in Law with an emphasis on Conflict Resolution from Harvard University. He was also a long-serving professor of law at the University of Costa Rica.

In addition to his work as a lawyer and a professor, he has also made a name in tourism, commercial trade, and public policy. He also produced and hosted a number of television and radio shows focused on his moderate pro-freedom message.

More on Otto Guevara  tomorrow.